Financial health
Change in working capital
Working capital
What it is
Cash tied up — or released — by day-to-day operations: inventory to finance, customers paying late, suppliers paid later.
How to read it
A negative swing means growth is consuming cash (inventory must be bought before sales are collected). Positive, the company collects before it pays — a very comfortable model.
What it does not tell you
Highly seasonal: read over a single quarter, this line can be misleading. Look at the full year.
Other measures — Financial health
Educational content. Polaris is not a registered investment adviser and makes no recommendation.